90% of millionaires got their wealth from real estate. But, when you buy real estate, you need to know about owner statements. These documents are essential for keeping on top of finances and managing several properties.
But what are owner statements? How do you use them in real estate investment?
Typically, you get an owner statement document every month. Depending on your real estate, the owner's statement will be different as the layout can change.
Here is everything you need to know about this document.
A Guide to Owner Statements
Owner statements are types of paperwork that document your property expenses and the condition of the building. The main goal of having an owner statement is to help you manage your income. They also help you prepare for when you want to sell real estate.
You can find the following information in the owner's statement:
- Utility costs for properties
- Current debts and upcoming payments
- Final account balance every month
- Other expenses
Once you receive the owner's statement, you can budget for the rest of the year. This is important if you have more than one property and need to keep on top of your expenses. Otherwise, you could end up paying for unexpected costs and blowing your entire budget.
As a general rule, you should always put extra money aside for repair costs on your properties. Plus, it's a good idea to hire a property manager. These professionals can help you organize tenant rental payments and plan maintenance checks.
The owner statement will also give you a good overview so you can stay up-to-date with your properties.
Owner Statement Layout
When you receive your owner statement, you will see your personal details and the preparation date. It's also essential that the statement has the balance from the earlier statement so you can compare your spending habits. This way, you can find ways to cut costs and save money.
You should have a detailed outline of where repairs were made and when. This will give you a better understanding of how much money to put aside for the following months and where you can make changes.
If you're new to real estate investment, you should hire a property manager to assist you when reviewing the statement. They can advise you on handling difficult clients and scheduling repairs.
To make the most of owner statements, it's vital that you read over this document in depth. You should always be aware of your finances to avoid losing income. But you don't have to handle account finances alone.
Before you invest in more real estate investment, hire a property management service. So, you can earn more money with less stress.
Work With Property Managers
Managing your finances is an important part of being a real estate investor. Real estate offers a great way to make a passive income if you want to increase your bank accounts. Learning about owner statements will give you insight into maintaining properties and the added costs.
Hire us to take care of your property management here. Get in touch if you have any more questions.
